Social Purpose Corporation – May Consider Public Benefit In Addition to Maximizing Profit

Since 2012, California has created two new corporate structures: (1) the social purpose corporation; and (2) the benefit corporation.  Unlike traditional for-profit corporations, these new corporate structures are permitted to consider the public benefit in making corporate decisions. The primary purpose of a for-profit corporation is as stated in the name —  for profit. (See… Continue reading Social Purpose Corporation – May Consider Public Benefit In Addition to Maximizing Profit

For Profit Corporation Means Just That — Maximizing Profits to Shareholders is Essential

Corporate law requires corporations to maximize profits to shareholders.   This absolute requirement may expose corporate leadership (and the corporation itself) to potential litigation if shareholders disagree with decisions made by the corporate leadership, as was shown in the case of  Dodge v. Ford Motor Co., 170 N.W. 668 (Mich. 1919). Henry Ford, and the Board… Continue reading For Profit Corporation Means Just That — Maximizing Profits to Shareholders is Essential